Computation of Material variance | ||||
Formula | ||||
Material Price Variance | (Standard Price-Actual Price)*Actual quantity | Standard Price | $ 2.60 | |
Actual Price | $ 2.50 | |||
Actual Qty | 270400 | |||
Material Price Variance | 27040 | Favorable | ||
Material Usage Variance | (Standard Quantity-Actual Quantity)*Standard Price | Standard Qty | 265000 | 53000*5 |
Actual Qty | 270400 | |||
Standard Price | $ 2.60 | |||
Material Usage Variance | -14040 | Adverse | ||
Labor variance | ||||
Labor rate variance | Actual Time Taken (Standard Rate – Actual Rate) | Standard rate | $ 18.00 | |
actual rate | $ 17.95 | |||
actual time taken | 40100 | |||
Labor rate variance | 2005 | Favorable | ||
Labor efficiency Variance | Standard rate (Standard Time - actual time) | Standard rate | $ 18.00 | |
Standard Time | 39750 | 0.75*53000 | ||
actual time taken | 40100 | |||
Labor efficiency Variance | $ -6,300.00 | Adverse | ||
Fixed overhead variance | ||||
Fixed overhead spending variance | Actual fixed overhead-Budgeted Fixed overhead | Actual fixed overhead | $ 1,61,600.00 | |
Budgeted Fixed overhead | $ 1,62,000.00 | 54000*0.75*4 | ||
Fixed overhead spending variance | $ -400.00 | Favorable | ||
Fixed overhead Volume variance | Absorbed Fixed overheads - Budgeted Fixed overheads | Actual output | 53000 | |
Budgeted Output | 54000 | |||
Fixed overhead absorption rate | $ 3.00 | |||
Absorbed Fixed overheads | $ 1,59,000.00 | 53000*3 | ||
Budgeted Fixed overheads | $ 1,62,000.00 | 54000*3 | ||
Fixed overhead Volume variance | $ -3,000.00 | Adverse | ||
Variable overhead variance | ||||
Variable overhead spending variance | (Standard variable overhead Rate − Actual Variable Overhead Rate)*Actual labor hours | Standard variable overhead Rate | $ 3.00 | Per hour |
Actual Variable Overhead Rate | 3.04 | 121900/40100 | ||
Actual labor hours | 40100 | |||
Variable overhead spending variance | -1600 | Adverse | ||
Variable overhead Efficiency variance | Standard overhead rate x (Actual hours - Standard hours) | Standard variable overhead Rate | $ 3.00 | |
Actual hours | 40100 | |||
Standard hours | 39750 | 0.75*53000 | ||
Variable overhead Efficiency variance | 1050 | Adverse |
need help with the journal Materials Direct Materials Price Variance Direct materials (5 lbs. @ $2.60)...
Petrillo Company produces engine parts for large motors. The company uses a standard cost system for production costing and control. The standard cost sheet for one of its higher volume products (a valve) is as follows:Direct materials (7 lbs. @ $5.40)$37.80Direct labor (1.75 hrs. @ $18)31.50Variable overhead (1.75 hrs. @ $4.00)7.00Fixed overhead (1.75 hrs. @ $3.00)5.25 Standard cost per unit$81.55During the year, Petrillo had the following activity related to valve production:Production of valves totaled 20,600 units.A total of 135,600 pounds of...
I need help with Part 6. Numbers 3 and 4 These are wrong and have a red mark next to them Plimpton Company produces countertop ovens. Plimpton uses a standard costing system. The standard costing system relies on direct labor hours to assign overhead costs to production. The direct labor standard indicates that two direct labor hours should be used for every oven produced. The normal production volume is 100,000 units. The budgeted overhead for the coming year is as...
Trico Company set the following standard unit costs for its single product. Direct materials (30 Ibs. @ $5.10 per Ib.) Direct labor (8 hrs. @ $15 per hr.) Factory overhead-Variable (8 hrs. @ $6 per hr.) Factory overhead-Fixed (8 hrs. @ $9 per hr.) Total standard cost $ 153.00 120.00 48.00 72.00 $ 393.00 The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 65,000 units per quarter. The following flexible budget...
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Direct materials (clay) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($273,000.00 = 105,000.00 units) Standard Quantity 1.60 lbs. 1.60 hrs. 1.60 hrs. Standard Price (Rate) $ 1.70 per lb. $ 10.00 per hr. $ 1.10 per hr. Standard Unit Cost $ 2.72 16.00 1.76 2.60 Barley Hopp had the following actual results last year: Number of units produced and sold Number...
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Direct materials (clay) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($356,500.00 = 155,000.00 units) Standard Quantity 1.70 lbs. 1.70 hrs. 1.70 hrs. Standard Price (Rate) $ 1.80 per lb. $13.00 per hr. $ 1.40 per hr. Standard Unit Cost $ 3.06 22.10 2.38 2.30 Barley Hopp had the following actual results last year: Number of units produced and sold Number of...
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Direct materials (clay) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($275,000.00 + 110,000.00 units) Standard Quantity 1.60 lbs. 1.60 hrs. 1.60 hrs. Standard Price (Rate) $ 1.70 per lb. $11.00 per hr. $ 1.10 per hr. Standard Unit Cost $ 2.72 17.60 1.76 2.50 Barley Hopp had the following actual results last year: Number of units produced and sold Number of...
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Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Direct materials (clay) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead (5356.500.00 - 155,000.00 units) Standard Quantity 1.70 lbs. 1.70 hrs. 1.70 hrs. Standard Price (Rate) $ 1.80 per lb. $13.00 per hr. $ 1.40 per hr. Standard Unit Cost $ 3.06 22.10 2.38 2.30 Barley Hopp had the following actual results last year: Number of units produced and sold Number of...
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Direct materials (clay) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($425,500.00 + 185,000.00 units) Standard Quantity 1.70 lbs. 1.70 hrs. 1.70 hrs. Standard Price (Rate) $ 1.80 per lb. $12.00 per hr. $ 1.10 per hr. Standard Unit Cost $ 3.06 20.40 1.87 2.30 Barley Hopp had the following actual results last year: Number of units produced and sold Number of...
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Direct materials (clay) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($520,000.00 - 200,000.00 units) Standard Quantity 1.90 lbs. 1.90 hrs. 1.90 hrs. Standard Price (Rate) $ 2.00 per lb. $15.00 per hr. $ 1.20 per hr. Standard Unit Cost $ 3.80 28.50 2.28 2.60 Barley Hopp had the following actual results last year: Number of units produced and sold Number of...